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The Following Diagram Shows Two Budget Lines: a and B

question 243

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The following diagram shows two budget lines: A and B. The following diagram shows two budget lines: A and B.   Which of the following could explain the change in the budget line from A to B? A)  a decrease in income and a decrease in the price of X B)  a decrease in income and an increase in the price of X C)  an increase in income and a decrease in the price of X D)  an increase in income and an increase in the price of X Which of the following could explain the change in the budget line from A to B?


Definitions:

Discount Rate

The discount rate employed in discounted cash flow analysis to ascertain the present worth of future cash flows.

Annual Salary

The total amount of money that an employee earns in a year from their employer for their services.

Starting Bonus

A preliminary financial incentive given to a new employee as an enticement to join a company.

Interest Compounded

The process whereby interest is added to the principal sum, so that from that moment on, the added interest also earns interest, leading to exponential growth.

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